“Yves Smith on Reagan Centennial:
President Reagan broke unions and intervened in the market when big business required it”
I think there are many things we can admire President Reagan for – primarily for helping end the malaise in which the nation found itself:
- After Nixon’s Watergate;
- After Vietnam;
- After the Iran-Hostage crises,
- After the “Stagflation” of the late 70’s
and for bringing helping rejuvenate the optimism of America.
But I think we should challenge some of our assumptions, i.e. the fact that Reaganomics was Pro Corporate and not Pro “Free Market” . . .
- Remember what Bush Senior called Reaganomics? “Voodoo Economics!”
- Remember what David Stockman, Reagan’s own Budget Director called it? “Trojan Horse for the Rich!”
I offer the following that was shared with me recently as part of a group of commentaries by Yves Smith.
Duh!
Reagan saw his job as solving problems. By being a problem solver vs. adhering to a particular philosophy regardless of the consequences, I am told he approved tax increases 10 times or more. Yet, today, we view him as the hallmark of conservatism, many ignoring his willingness to compromise and accept tax increases from time to time.
That’s why I voted for Ron Paul. The modern day GOP sucks. How is one big monopoly dictating the choices you make in life any better than one big government doing the same thing?
Reagan almost tripled the national deficit by cutting taxes and spending more. Plus, he was for another unsustainable policy of giving amnesty to citizens of other countries that came here illegally. Instead of forcing Mexico to take care of its citizens, he wanted to exploit the cheap labor instead.
Reagan’s policies began the erosion of the middle class and now we have a gaping income inequality. Why the man is deified is beyond me.
To facilitate doing more of the same!
Rapscalion
“erosion of the middle class?” For starters you will need to define middle class.
Second. I sat in the ballroom and heard Art Laffer share the income taxes paid by the top 1% of income earners when Reagan took office. In 1980 that number was 17.5%.
In 2007 the top 1% paid 42.5 %. Art said that increase was a straight line throughout the period.
Over time history will acknowledge his contribution for a safer world.
What about Zombie Reagan?
All economic indicators show that income has eroded, except for the very wealthy. It should be obvious that we are progressing into a Balkanization of the country, in which a very few control most of its wealth. Would you not agree? So there’s your middle class, put a fork in it.
I have no idea if Laffer’s commentary is true or not, but even if so, it shows that there is litle to go around otherwise.